Fresh leasing by global technology majors is reinforcing Bengaluru’s position as India’s undisputed technology and Global Capability Centre (GCC) capital, even as global debates around AI-led job disruption continue.
Companies including Google, Amazon, Microsoft, Infosys, Accenture and IBM India Private Limited have expanded or committed to significant office space across key micro-markets such as Whitefield, Outer Ring Road and North Bengaluru. The scale of transactions signals structural not cyclical demand. Google is reportedly planning to lease over 2.6 million sq ft at Alembic City in Whitefield as part of a phased campus strategy. Earlier, Google IT Services India had leased approximately 6.5 lakh sq ft in the same development, with additional blocks reserved for future expansion. The staggered approach reflects how multinational occupiers are securing long-term capacity while retaining flexibility. Amazon, meanwhile, has operationalised its second-largest Bengaluru office in Kattigenahalli, near Kempegowda International Airport, spanning over 1 million sq ft under a 10-year lease. The scale and tenure underscore confidence in sustained workforce presence rather than short-term hybrid experimentation. Market experts argue that Bengaluru retains a structural edge over peers such as Hyderabad and Pune due to a combination of talent density, diversified sectoral presence and deep institutional-grade office supply. The city today offers roughly 230–240 million sq ft of office stock significantly higher than most southern markets providing large, contiguous Grade-A campuses that can accommodate multi-phase expansion.
Unlike markets constrained by land scarcity, such as Mumbai’s Bandra Kurla Complex, Bengaluru’s planning model allows for scalable tech parks and REIT-owned developments. Institutional ownership has improved building standards, sustainability compliance and professional management attributes increasingly prioritised by global occupiers. Crucially, demand is no longer dominated solely by traditional IT services firms. GCCs now account for nearly half of the city’s annual absorption, reflecting multinational corporations deepening engineering, AI research, fintech, automotive technology and pharmaceutical back-end capabilities in India. Domestic IT firms represent a smaller proportion of fresh take-up. Eastern corridors including Whitefield, Sarjapur and Marathahalli remain dense GCC clusters due to established vendor ecosystems. Outer Ring Road continues as the most active leasing belt, while North Bengaluru is emerging as a strategic node thanks to airport proximity and improving residential infrastructure. While headline rentals in Bengaluru may be around 15–20% higher than competing cities, occupiers appear willing to pay a premium for ecosystem advantages. Talent availability remains the decisive factor. The city’s mature startup culture, engineering colleges and multinational base create a self-reinforcing cycle of innovation and labour mobility. Importantly, recent expansion decisions counter the narrative that AI adoption will immediately reduce office demand. Instead, companies appear to be reallocating space toward advanced R&D, product engineering and collaboration-heavy functions.
The broader signal is clear: even in a volatile global environment, Bengaluru’s technology-led urban economy continues to attract long-duration capital commitments. As GCC-led absorption deepens, the city’s office market is transitioning from being India’s IT back office to becoming a global innovation operations hub one that blends scale, talent and infrastructure into a durable competitive advantage.
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GCC demand drives Bengaluru office growth
